EFAA

1. EFAA European Federation ofAccountants & Auditors for SMEs “The Big Voice for Small Business”

2. About EFAA (1) • Founded in 1994 to challenge unsufficient representation of SMPs in Europe • 2000 – opening of the office in Brussels, in the EU quarter • Represents National Accountancy & Auditing bodies which provide professional services to SME’s • 95% of the clients of EFAA members’ individual members are SMEs • Upholds the highest professional and ethical standards • Strict scrutiny process for membership applicants • Promotion of high level international solutions such as the IFAC code of ethics • Concentration on SME and SMP issues • International standards for SMEs, Small Business Act for Europe, Small entrepreneurship, SME financing are at the core of EFAA business • Participation from global accountancy firms only proportionate to their involvement in the sector • Significant SME representation on board and expert groups

3. About EFAA (2) • Provides practical cross-border cooperation • EFAA conferences organised every a year with a focus on networking • Coordination of consultations/answering to exposure drafts of regulators and standard setters • Contribution to national events • Professional matchmaking • Substantial volunteer input brings member bodies closer together and creates practical opinions • Expert groups leverage members’ individual expertise and professionalism • Drafting of position papers, regular conference calls with relevant specialists for the member bodies involved • Information and communication on relevant issues • Updated website with publications and news • EFAA registered as group of interest to the European Parliament having access to the latest developments and attending relevant committees • Small & focussed secretariat from SME backgrounds enables good value for money work for the members • 3 persons with executive tasks are involved

4. Aims & Objectives • To serve the interests of members, SME community and thereby • the public interest at large by: • Aiming to provide a cost-effective international affairs solution for each of its members • Providing emphasis on facilitating genuine inter-member understanding of national professional practices in order to provide high quality and Europe-wide submissions • Ensuring that EFAA opinions are effectively represented and taken into consideration • Influencing legislation to reflect SMP and SME concerns • Co-operating with other European and International representative organisations also through specific MoUs • Monitoring the work of EU institutions • Participating in technical discussions with EU, wider global committees and standard setters

5. Spheres of Influence (1) INTERNATIONAL IASB International Accounting Standards Board IFAC International Federation of Accountants EFAA IAASB Int. Accounting and Assurance Standards Board IESBA Int. Ethics Standards Board for Accountants IAESB Int. Accounting Education Standards Board

6. Spheres of Influence (2) • PRIVATE ORGANISATIONS • INTERNATIONAL STANDARD SETTERS • IFAC – International Federation of Accountants • IAASB – International Audit and Assurance Standards Board • IESBA – International Ethical Standards Board for Accounting • IAESB – International Accounting Education Standards Board • IASB – International Accounting Standard Board • EFAA has a seat in three Consultative Advisory Groups that advise the respective Board (Auditing, Education and Ethics). • EFAA officially co-operates with the IFAC SMP Committee, the IFAC internal body specifically addressing SMPs for SMEs issues

7. Spheres of Influence (3) INTERNATIONAL EUROPE IASB International Accounting Standards Board IFAC International Federation of Accountants EFAA IAASB Int. Accounting and Assurance Standards Board UEAPME European Association of Crafts Small and Medium-sized Enterprises IESBA Int. Ethics Standards Board for Accountants IAESB Int. Accounting Education Standards Board EFRAG European Financial Reporting Advisory Group

8. Spheres of Influence (4) • PRIVATE ORGANISATIONS • PROFESSIONAL AND TRADE ORGANISATIONS • UEAPME – European Association of Craft, Small and Medium Enterprises • EFAA has been an associate member of UEAPME since 1996 • EFRAG – European Financial Reporting Advisory Group • EFAA is a founding father of EFRAG • EFAA has a seat in the EFRAG Governance and Nominating Committee • EFAA assists the works of the EFRAG SME Working Group

9. Spheres of Influence (5) INTERNATIONAL EUROPE IASB International Accounting Standards Board DG Internal Market DG Enterprise European Commission IFAC International Federation of Accountants European Parliament EFAA IAASB Int. Accounting and Assurance Standards Board UEAPME European Association of Crafts Small and Medium-sized Enterprises IESBA Int. Ethics Standards Board for Accountants IAESB Int. Accounting Education Standards Board EFRAG European Financial Reporting Advisory Group

10. Spheres of Influence (6) • EUROPEAN REGULATORS AND INSTITUTIONS • EUROPEAN COMMISSION • - Auditing • - Accounting • - SME • - SME Finance • - Company Law • - Regional Developments • EUROPEAN PARLIAMENT - Economic and Monetary Affairs Committee - Legal Affairs Committee - Internal Market Committee

11. EFAAmembership (1) • Ordinary members - criteria • To be recognised either by law or general consensus within its country as a substantial national organisation of good standing within the accounting profession • To focus primarily on clients from small and medium- sized enterprises, • Individual members shall either have a minimum of theoretical high professional education for 4 years combined with a traineeship of the minimum of 1 year, or a bachelor degree combined with a traineeship of the minimum of 2 years or a qualification in accountancy equivalent to at least the bachelor degree combined with a traineeship of the minimum of 2 years or a comparable level of practice-experience of 10 years having lead to an equivalent qualification in accountancy • Individual members work as professional accountants in public practice, business, academia, public sector or otherwise within accountancy and commit to follow a sound set of professional ethical principles

12. EFAAmembership (2) • Associate members – criteria • Professional accountancy bodies, which do not meet all the conditions for ordinary membership, but which are, according to their objectives, seeking to meet the requirements • Observer members • Professional accountancy bodies that meet all the conditions for ordinary membership, but that have, initially, decided to apply for observer membership

13. Members’ Members (In thousands) Full members UK – AAPA 0.5 (with ACCA) 120 FRA – ECF 2 ESP – CGCEE 45 ITA – CNDCEC 112 POR – CTOC 75 NED – NOvAA 6.5 GER – DStV 32.5 POL – SKwP 32 NOR – NARF 6 HUN – TAX 0,1 FIN – TAL 0,6 AZE – CAAR 1 Observer members SE – SRF 4,1 Associate Members SLO – GZS 0.7

14. The Board • President Geoffrey Britton (UK) • Chief Executive Off. Federico Diomeda (ITA) • Members Marcos Anton Renart (ESP) Prof. Hans-Michael Korth (GER) Hans Rjikse (NED) Anna Karmanska (POL) Michele Testa (ITA) • Main tasks • To take overall responsibility for the day-to-day operation of EFAA according to the agreed strategy, • To draft the strategy, priorities and performance targets

15. The Technical Department • EFAA has a strong technical department led by Ms. Marie Lang, EFAA Technical Director. This assures proper co-ordination within the Board and the Expert Groups in order to increase the level of submissions and responses to external bodies and provides proper technical representation in all the different technical groups to which EFAA belongs.

16. Expert Groups • EFAA divides work into 4 sections, each representing different aspects of the profession • Members are recruited based upon their wide experience of each particular speciality and approved by the Board • Wide range of opinions is debated within each group • Submissions can be quickly devised and made available to users • Almost all member organisations have significant input into each expert group

17. Accounting • Chair Richard Martin (UK) • Members Robin Jarvis (UK) Paula Franco (POR) Marcos Anton Renart (ESP) Jan Achten (NED) Zya Qurbanli (AZE) Juergen Maiss (GER) Marcin Kedzior (POL) Sirpa Koponen (FIN) Stefano Santucci (ITA) • Main tasks • to comment on international standards for SMEs, • to comment on EU 4 and 7 Directives overhaul proposals, • to assist the EFRAG SME WG current works • to develop EFAA's own proposals for the regulation of accounting in Europe; and • to maintain a dialogue with the DG Internal Market Accounting Unit

18. Auditing • Chair David York (UK) • Members Francisco Suarez (ESP) Daniel Marcelo Piano Bassi (ESP) Josè Maria Hinojal Sanchez (ESP) Islam Bayramov (AZE) Andre Broers (NED) Michele Testa (ITA) Agnieszka Tyczynska (POL) Bodo Richardt (GER) Main tasks • to follow the IAASB strategy and commenting on revised, redrafted and new ISAs – ISREs and ISRSs and make sure the needs of SMPs and SMEs are taken into account, • to work with EC - EP and national audit regulators to ensure that SMP/SME interests are taken into account, • to maintain the dialogue with the DG Internal Market Auditing Unit

19. Education • Chair Anne-Marike Van Arkel Rijbroek (NED) • Members Tomas Gabrusewicz (POL) Maria Alvarado (ESP) Afig Israfilov (AZE) • Main tasks • to comment on IAESB exposure drafts, • to influence the IAESB to ensure that proper education and training measures are developed taking into account the needs of SMPs, • to facilitate the exchange of best practice in education between EFAA member bodies, and others

20. SME Issues • Chair Rosana Mirkovic (UK) • Members Jorgen Lund (NOR) Knut Hoylie (NOR) Hans Christian Ellefsen (NOR) Marcos Anton Renart (ESP) Gabriel Gutierrez (ESP) Nelson Ferreira (POR) Giorgia Butturi (ITA) Dorota Wyczolkowska (POL) Juha Ahvenniemi (FIN) • Main tasks • to comment on European Commission initiatives to promote SMEs, • to develop EFAA policy and position papers on key SME issues such as access to finance, insolvency, tax, and • to liaise with SME groups at European level (e.g. UEAPME, SME-Union)

21. Priorities for the year • “There is no doubt in my mind that harmonization of European working practices within our profession can show a degree of leadership to other jurisdictions throughout the world. Perhaps a more pragmatic approach to the way in which we work will relate to our core involvement with the SME clients of our profession. EFAA intends being fully and publicly engaged with a genuinely integrated relationship with the SME community and initiatives of a fully inclusive nature are being planned” Geoffrey Britton President • “Our ambition is to make even more light on SMPs and to share the responsibility of holding this big lamp with the relevant organisations both in Europe and worldwide that share the same feelings. SMPs are a big family. Big families need wise leadership. Wise leadership is driven by responsible people that do not set up a private club for their own interests. Inclusiveness is the key for SMPs And this is the ultimate goal for a long term action for EFAA. Federico Diomeda CEO /Extracts from EFAA Annual Report 2011/

22. European Federation of Accountants and Auditors for SMEs Rue Jacques de Lalaing 4 B-1040 Brussels Belgium T +32 (0)2 736 8886 F +32 (0)2 736 2964 Federico.diomeda@efaa.commarie.lang@efaa.cominfo@efaa.com www.efaa.com